Page 53 - Policy Economic Report_Feb'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Addressing reforms in the Exploration and Production (E&P) sector, Shri Puri detailed the scale of Open
Acreage Licensing Program (OALP) Round X covering about 200,000 square kilometers. The Minister
explained that enhanced interest in this round has been driven by systematic reforms in the regulatory
regime, transitioning from production to revenue sharing mechanisms, along with the
proposed amendments to Oilfields (Regulation and Development) Act 1948.

Additionally, Shri Puri announced that the new legislative framework, developed through extensive
consultations, is set to be presented in the Lok Sabha. He particularly noted the collaboration of ONGC
with BP, and Reliance in bidding for blocks in earlier rounds as a strong message of industry partnership.

Outlining the Ministry's priorities, the Minister emphasized focus on E&P, stressing the importance of
expert collaboration and the proposed changes to regulatory framework that allows appropriate
compensation for resource discovery to the stakeholders in the sector.

The Minister highlighted the significance of the amendments, passed by the Rajya Sabha, in ensuring
policy predictability, particularly regarding windfall tax implementation. He emphasized the removal of
discretionary elements in policy implementation as a move toward more transparent governance in the
energy sector.

Discussing the global energy scenario, the Minister observed that the new US administration's push for
increased oil supply has created favourable conditions in global markets. He noted the emergence of new
oil sources from the Western Hemisphere, including Brazil, Argentina, Suriname, Canada, US, and Guyana,
as beneficial for major consuming nations like India. Shri Puri expressed complete confidence in India's
international investments in the Oil & Gas assets across Brazil, Venezuela, Russia, and Mozambique.

Shri Hardeep Singh Puri described the biofuel program as a remarkable story, citing current capacity of
1,700 crore litres for ethanol blending, while discussing potential beyond the 20% blending target.
Moreover, Shri Puri expressed particular excitement about green hydrogen, confirming confident
progression toward the 5MMT annual production target for 2030, while also highlighting sustainable
aviation fuel development.

Secretary, Ministry of Petroleum and Natural Gas, Shri Pankaj Jain, detailed the business conducted during
IEW 2025 across various domains. He categorized the agreements into distinct areas: supply
arrangements for crude, LNG, and LPG across geographies; technology partnerships for digital refinery
solutions; and exploration services.

Shri Pankaj Jain also highlighted the unprecedented scale of OALP Round X, emphasizing the need for
global expertise to exploit hydrocarbon resources in the country. Shri Jain also discussed the potential use
of the Oil Industry Development Fund, established under the Oil Industry Development Act, for innovative
financing needs in deep-water exploration projects.

Felicitation to Startup Competition and Hackathon Winners:

The prestigious Avinya’25 – Energy Startup Challenge awards, the flagship initiative of the Ministry of
Petroleum and Natural Gas, were presented by Shri Hardeep Singh Puri and Shri Pankaj Jai. Avinya’25

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